ILSR did some research a number of years ago looking at the economic
development impact of using cloth diapers.

Here's what we found:

Reusable cloth diaper companies tend to be local. Diaper services
rarely serve customers more than 100 miles away. Over 300 companies
nationwide collect and wash diapers for over 750,000 families, employing
10,000 to 12,500 people. Each business employs between 5 and 50
workers. Every 90 families that use a diaper service creates one
full-time job. A complete switch to diaper services would generate an
estimated 72,000 jobs nationwide in this service industry alone.

In contrast, two companies together produce 87% of the disposable
diapers sold.

I know Mothering magazine has published some excellent articles on cloth
vs. disposable diapers. You might give them a call and see if they can
fax you any: 504-984-8116

Babies have less diaper rash with cotton diapers because of their
breathability (air circulation means cooler temps within the diaper).

Some 40 million trees are felled each year to make disposable diapers.
One baby in cloth diapers will save one ton of garbage containing
untreated human waste from being buried in the earth. With cloth
diapers, human waste is properly routed through the sewage system.

Using cloth diapers will save parents money (likey $1,000 to $2,000 over
a 2-year period and even more with more children). Washing diapers at
home is even cheaper than a diaper service.